19. On January 5, 2020, Alpha Company acquired 100% of the shares of Beta Company for an amount which is P300,000 over the book value of interest acquired. On this date balance sheet of Alpha Company and Beta Company are as follows: Alpha Company Beta Company Assets P7,500,000 1,700,000 1,150,000 5,000,000 200,000 P15,550,000 P1,300,000 450,000 800,000 1,050,000 50,000 P3,650,000 Cash Accounts Receivable Inventories Equipment (net) Patents Total Assets Liabilities & Equity Accounts Payable Notes Payable Ordinary Share Capital Ordinary Share Premium Retained Earnings Total Liabilities & Equity P200,000 P600,000 2,000,000 5,000,000 6,750,000 1,200,000 P15,550,000 2,000,000 600,000 850,000 P3,650,000 The identifiable assets and liabilities of Beta Company are fairly valued except for inventories which is undervalued by P100,000 while equipment is overvalued by P50,000. Paid direct and indirect expenses of P30,000 and 20,000, respectively. How much is the goodwill recognized on the business combination? a. P450,000 b. P350,000 c. P550,000 d. P250,000 dom 20. How much is the consolidated assets as of date of acquisition? a. P19,450,000 b. P15,950,000 c. P15,900,000 d. P15,700,000
19. On January 5, 2020, Alpha Company acquired 100% of the shares of Beta Company for an amount which is P300,000 over the book value of interest acquired. On this date balance sheet of Alpha Company and Beta Company are as follows: Alpha Company Beta Company Assets P7,500,000 1,700,000 1,150,000 5,000,000 200,000 P15,550,000 P1,300,000 450,000 800,000 1,050,000 50,000 P3,650,000 Cash Accounts Receivable Inventories Equipment (net) Patents Total Assets Liabilities & Equity Accounts Payable Notes Payable Ordinary Share Capital Ordinary Share Premium Retained Earnings Total Liabilities & Equity P200,000 P600,000 2,000,000 5,000,000 6,750,000 1,200,000 P15,550,000 2,000,000 600,000 850,000 P3,650,000 The identifiable assets and liabilities of Beta Company are fairly valued except for inventories which is undervalued by P100,000 while equipment is overvalued by P50,000. Paid direct and indirect expenses of P30,000 and 20,000, respectively. How much is the goodwill recognized on the business combination? a. P450,000 b. P350,000 c. P550,000 d. P250,000 dom 20. How much is the consolidated assets as of date of acquisition? a. P19,450,000 b. P15,950,000 c. P15,900,000 d. P15,700,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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100%
19 and 20 plsss?
Transcribed Image Text:an amount which is P300,000 over the book value of interest acquired. On this date, the
19. On January 5, 2020, Alpha Company acquired 100% of the shares of Beta Company for
CHAPTER 2: CON SOLIDATION - D ATE OF
ACQUISITION
KOITIZI105
Page 194
19. On January 5, 2020, Alpha Company acquired 100% of the shares of Beta Company e
an amount which is P300,000 over the book value of interest acquired. On this date OF
balance sheet of Alpha Company and Beta Company are as follows:
Alpha Company
Beta Company
000.05E
Assets
P7,500,000 0,20 P1,300,000
450,000
800,000
-0-1,050,000
Cash
1,700,000
1,150,000
5,000,000
200,000
Accounts Receivable
Inventories
Equipment (net)
50,000
Patents
Total Assets
P15,550,000
P3,650,000
Liabilities & Equity
Accounts Payable
Notes Payable
Ordinary Share Capital
Ordinary Share Premium
Retained Earnings
Total Liabilities & Equity
P200,000
P600,000
2,000,000
5,000,000
6,750,000
1,200,000
P15,550,000
2,000,000
600,000
850,000
P3,650,000
The identifiable assets and liabilities of Beta Company are fairly valued except for
inventories which is undervalued by P100,000 while equipment is overvalued by P50,000.
Paid direct and indirect expenses of P30,000 and 20,000, respectively.
How much is the goodwill recognized on the business combination?
a. P450,000
b. P350,000
c. P550,000
d. P250,000
20. How much is the consolidated assets as of date of acquisition?
a. P19,450,000
b. P15,950,000
c. P15,900,000
d. P15,700,000
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